Sensex and Nifty fell for the ninth consecutive session on Monday, logging their longest losing streak in more than eight years.
According to an analyst, the fall is predominantly on account of political uncertainty in the country, weak global cues, high crude oil prices and unimpressive fourth quarter results.
As the country gears up for the seventh and the final phase of elections, investors are getting increasingly nervous by the day. “While we see the NDA coming back to power, the investors fear market may turn topsy turvy if anything short of that happens. Hence we see a very dismal buying interest,” said Kotak Securities Head of Fundamental Research, Rusmik Oza.
The Foreign Institutional Investors (FII), who have been a key support last month driving Sensex and Nifty to life-time highs, have turned sellers this month. FIIs have pulled out a little over Rs 5,000 crore since May 1.
The FII exodus has caused the equity as well the currency market to fall. The Sensex and Nifty have declined nearly 5 per cent during the past 9 sessions, including the one on Monday marred by heavy volatility.
Global markets are nervous about the fresh US-China spat over trade. On Friday, the US more than doubled tariffs on $200 billion worth of Chinese products from 10 per cent to 25 per cent, which elicited an immediate response from China threatening “necessary counter-measures”.
On Monday, the BSE Sensex ferried over 580 points between the days highs and lows before closing 372.17 points lower at 37,090.82. The Nifty lost over 1 per cent or 130 points to drop to 11,148.20 during the day’s trade.
“Although, the picture has not been rosy for investors, we still believe that this decline is providing an opportunity for those who are willing to build their portfolios,” said Sameet Chavan, Chief Analyst-Technical and Derivatives,” Angel Broking.